Monday, April 19, 2010

Time to be realistic about gambling

tribune242 Editorial:


TO GAMBLE or not to gamble, that is the question.

Former prime minister Perry Christie believes that to legalise "the numbers business" in the Bahamas would have "enormous implications" for the tourism industry as well as "deep social implications."

Prime Minister Hubert Ingraham has met with the Christian Council, which really represents the Baptist voice, a voice that is rigidly against gambling in any form -- as a matter of fact it is a tenet of their religion. However, there are other churches -- the Catholics in particular -- that use a benign form of gambling - bingo and raffles -- to raise funds to help operate their schools and various other organisations.

From time to time the police have raided the various numbers houses -- including the largest one of all, the Flowers enterprise-- vowing that as long as gambling remains on the statute books they are going to enforce the law and stamp it out.

And then there are the people, who are making a fool of them all. The numbers game has become a part of their religion, and police or no police, law or no law, they intend to play the numbers. Why even police officers have been seen at the numbers window waiting to take their chance. And we know of Baptists who have asked for birth dates, hoping that playing those dates will flip a few extra coins in their pockets.

Meanwhile, crime grows in our communities and society needs protection. There are not enough police officers to go around, so the Christian Council will have to make up its mind and face reality. Do these men of the cloth want the police to chase the numbers man, and his patrons, or the gun-toting criminal who breaks into their homes, steals, rapes and murders? A realistic choice has to be made.

The Council is adamant that gambling should be stamped out, rather than legalised and controlled. The numbers racket has been allowed to go on far too long in this county, so long that even a police state would find it impossible to suppress it. If government listens to the Council, nothing will be done and the street corner numbers racket and Flowers' more sophisticated operation will continue to flourish. The people will continue to make a fool of the law, and the police will be stretched thin in trying to chase both the harmless and the vicious criminal. It is now time that the Christian Council faces reality.

In discussing the matter in the House of Assembly this was Prime Minister's Ingraham's realistic view of the situation:

"Now, Mr Speaker, this society on a Sunday morning, you go to the gaming houses, to Flowers and those places, and it is like a bank on payday - government payday. They are set-up like a bank, hundreds and hundreds and hundreds of places. Well, either we believe that it is illegal, or we believe that it should be legal," said Mr Ingraham.

"I told the commissioner of police last week, that it seems to me that we are unable to enforce that law, and that I was going to give consideration to legalizing the numbers business. Of course he didn't support me in that thinking, but the reality is that it is not an enforceable law. And the society is doing it everyday. There is webshop here, and a webshop there, all over the island," said the prime minister.

The phenomenon of webshops - gaming houses - have now spread across the Family Islands, noted Mr Ingraham, to places such as Abaco, Exuma and Bimini. He said of the phenomenon, "it's nationwide."

As it cannot be controlled, then manage it, and tax it to the point that its revenue can benefit all of the Bahamian people. Education, the medical facilities and sports all desperately need an infusion of funds to improve their services to the nation.

In Barbados, for example, the national lottery is made up of the Barbados Olympic Association, the Barbados Cricket Association, the Barbados Turf Club and the National Sports Council.

It was announced that GTECH Holdings Corporation has a management agreement to operate and manage the Barbados Lottery. During the 18-year agreement GTECH expects to generate revenues between $80 and $100 million.

Can one imagine what government could do with such funds?

The Bahamian people have already decided the issue. Regardless of the law, they intend to play their numbers. It would be better for all of society if this game of chance were decriminalized, taken in out of the cold and controlled by the laws of the land.

April 19, 2010

tribune242

Ranking Women in the FNM have expressed alarm to PM Hubert Ingraham over the "disappearance of FNM women in prominent levels of national life"

FNM women hit out
By CANDIA DAMES ~ Guardian News Editor ~ candia@nasguard.com:


Several senior women in the Free National Movement have expressed alarm to Prime Minister Hubert Ingraham over the "disappearance of FNM women in prominent levels of national life", and said they are offended by his "callous dismissal" of their recent bid to meet with him to discuss the appointment of a governor general.

The women said they had recently become "very concerned" about several matters related to the functioning and public face of their party.

They failed in their efforts to convince the prime minister, who heads the FNM, to appoint former Cabinet minister Janet Bostwick to the high post.

Instead, Ingraham chose Sir Arthur Foulkes, who was sworn in last Wednesday.

In a letter dated March 29, 2010, the women wrote to Ingraham that they wished to express their opinions on the appointment that had been looming.

Their letter came before any announcement was made regarding Sir Arthur's appointment.

"Miss Italia Johnson (former Speaker of the House) reported to us that upon asking for an audience with you on our behalf, you told her that you had no need to be 'lobbied' on the matter," the women wrote.

"We write to express our extreme disappointment and dismay regarding this response and to say that we are offended at your callous dismissal."

Johnson and former FNM MPs Theresa Moxey-Ingraham and Jaunianne Dorsett were among the women who signed the letter to the party's leader.

The women said, "We have always considered ourselves much more than mere lobbyists in this great organization. In fact, history will reflect that from its inception, we have all played pivotal roles in the growth and development of this party and that we have successfully performed in every role.

"...We have worked diligently at every conceivable level of this party with the exception of leader, and we have carried our fair share of the burdens, responsibilities and blame that has gone into the building of a strong and successful political party.

"We are offended by the very term 'lobby'."

The women said they believe the appointment of Bostwick, an "iconic" woman in the party, to the office of governor general "is an opportunity for our party to regain some of the political prominence we enjoyed as an organization which respects and celebrates the contribution of women."

They said that in recent years, what had been perceived as a 'golden age' of prominence for FNM women in public life has turned into a wilderness period.

The women said that their numbers in Cabinet have been reduced; their numbers in the Senate have been reduced; few women have been appointed as chair or deputy of major public boards and committees, and true progress and prominence for the women in the party appears to have been stalled and "we have been dismissed and cast aside."

But in a response dated April 8, the party's leader failed to agree that FNM women were being cast aside.

"Each of you have held office in either our party or in governments which I have been privileged to lead between 1990 and 2002 and again from 2005 to the present," Ingraham wrote.

"You are no doubt aware that my dedication to equality of the sexes is not transitory nor politically motivated but rather fundamental to my belief system.

"I have never appointed women to positions of leadership or responsibility so as to appease a political faction or pander to any group. Women who serve in my administrations are held to the same standard as are their male colleagues. I have seldom been disappointed with the commitment of women to getting the job done and done well."

Ingraham told the women that he shared their view that Bostwick is worthy of every accolade that the party and government can offer, given her long years of service to the party and the party's cause of national political reform and social and economic advancement for Bahamians.

"Mrs. Bostwick was a valuable member of my Cabinet for 10 years," he noted.

"You should be aware that Mrs. Bostwick is fully aware of my personal high regard for her and of my gratitude and appreciation to her for her service to our party and to our country."

Ingraham said, "One of my greatest disappointments in public life has been my inability, and that of our party, to cause the majority of the adult Bahamian population to support the equality of the sexes in law and in practice.

"I am totally committed to the promotion of women and women's rights in our country. As the father of four daughters I can have no other view..."

Ingraham also said no one regrets more than he the dearth of women elected to the House of Assembly in the most recent general election.

"Indeed, it appeared as if we as a nation took a step backward when so many qualified and dedicated women offered by us to the electorate were rejected at the polls in 2007."

There is currently only one woman in Ingraham's Cabinet — Loretta Butler-Turner.

The only other female FNM MP is Verna Grant, who represents in Eight Mile Rock.

The Progressive Liberal Party has three female MPs — Cynthia 'Mother' Pratt, Glenys Hanna-Martin and Melanie Griffin.

In his letter to the FNM women, Ingraham said the fight to gain wide support and recognition of women must be fought in every corner of society.

"The victory will not come from political appointment but from genuine acceptance of women as viable political leaders," he said.

Referring to the controversial Marital Rape Bill, Ingraham said, "Since 2007 we have not been able to build a groundswell of support to afford married women the same level of protection against abuse by a spouse that is extended by law today to prostitutes."

The prime minister outlined his role and that of his administration — past and present — in advancing the cause of women in The Bahamas, including the appointment of the first female governor general and first female Speaker of the House of Assembly.

He ended his letter to the FNM women by advising that he proposed to appoint Sir Arthur governor general.

"Sir Arthur, who sacrificed much and who suffered long and hard in the political trenches of our country, all in the interest of furthering the cause of the Free National Movement, is now in his 80s," Ingraham wrote.

"I do not believe that we can properly postpone national recognition of his life work and sacrifice. He is most deserving of this tribute of respect and I trust that he will have the full support of the senior women of the Free National Movement."

In addition to the former female FNM MPs, the March 29 letter to Ingraham was signed by Patricia Johnson, Margaret Rodgers, Erma Williams and Althea Sands.

Apart from the "disappearance" of women in prominent positions in national life, they did not elaborate on any other concerns in their letter to their party leader.

April 19, 2010

thenassauguardian

The Bahamas needs tax and spending reform

By Youri Kemp:


I was listening to the news just recently, where Prime Minister Hubert Ingraham, who also is the Minister of Finance, said something to the effect that he would not lean against anyone broaching the issue of taxing the illegal numbers racket in The Bahamas, by virtue of taxing the internet cafés that are reportedly "fronts" for internet gambling businesses.

Educated at the Bahamas Baptist Community College; St Thomas University and The London School of Economics and Political Science, Youri Kemp is a Management and Development ConsultantHowever, I'm not quite sure how easy it is to tax the numbers racket through internet cafés in The Bahamas. For starters, you have to have them recognize that they are, in fact, running illegal gambling out of internet cafés -- considering that the authorities have not been able to produce solid evidence in order to prosecute anyone allegedly gambling in these establishments.

Secondly, what about the internet cafés that are legitimate internet cafés? Can't tax them... can you? Lastly, if I am running an illegal gambling racket through an internet café, then why would I want to pay taxes to the government for something I have been getting away with for so long?

Even if you put the work out for companies to bid on a national lottery, you still would be left at square one with the internet cafés that run the numbers racket and their subsequent prosecution.

It is no easy task and good luck to the persons tasked with sorting it out.

More importantly, however, if we have come to a point where we are speaking in open forum about taxing the numbers racket, seriously, it signifies that the government feels that The Bahamas is at a juncture where it needs meaningful tax reform for government revenue; the government, clearly, is not generating enough internal revenue in order to meet its obligations now; and that the prospects of meeting the debt service, is very bleak with the current system of taxation.

To be very blunt: the government has to tax. However, the term "tax reform” isn't necessarily supposed to have a negative connotation or stand for a pejorative slight of hand.

The word "tax", does evoke personal sentiments for obvious reasons and the word "reform" -- especially used by politicians -- is a code word of sorts for the refocusing of entitlements and simultaneously as a buzz word for business persons, which signifies more and unnecessary regulation. Which to business people means more time away from their business and more time dealing with a governmental agency with mentally challenged employees.

To be fair, government employees aren't mentally challenged -- although some who look like they shouldn't be makes one wonder -- and everyone doesn't understand what reform signifies -- either which way -- and no one wants to pay more taxes.

The truth is, however, The Bahamas government is in debt to over 40 percent of GDP -- with a widening deficit. Another clear fact is that The Bahamas doesn't have any streams of government revenue, other than from import taxes (where it gets over 50% of its revenue), National Insurance contributions, revenue from public corporations and government agencies and also through forms of public service charges and real estate; i.e., vehicle registration and real property tax.

Conversely, the Bahamas's tax to GDP ratio is about 18 percent. Which isn't that bad, considering Barbados, Jamaica and Trinidad is at 32, 27 and 38 percent respectively. But, The Bahamas isn't just like any other Caribbean country -- we do things a little different.

Firstly, we don't produce many agricultural products for mass consumption in The Bahamas, neither do we have a large export sector in terms of people involved in exports, away from the concentrated profits some firms make.

Another concern that compounds the lack of efficient and beneficial dynamism in the market place as it relates to an optimal and targeted tax mix is the reliance of import tariffs for government revenue.

While The Bahamas does not produce over 80% of what it consumes, and with the tax system as basic as it is, it has to tax imports heavily. As a consequence, this puts consumers and more importantly, low income consumer, at a disadvantage as the tax burden is disproportionate to what they spend on taxes in relation to what larger corporations and high income earners pay. For example, a 50 percent flat tax on all consumer goods means more to someone who makes $20k per year than someone who makes $100k per year and a flat rate for business licenses, means more to the small business person than it does for a large corporation.

Moreover, large industries such as banking and shipping, are virtually untouched as it relates to taxation -- no capital gains or corporate tax. Even the export of fisheries products is untouched as they relate to export taxes.

Some may argue that these low taxes are the reason why these industries are so dynamic and successful. However, there is more to a successful enterprise than just low taxation -- location, barriers to entry and diversification, comparative and competitive advantages, come first and foremost for a successful enterprise.

More importantly, inequitable or no taxation, can be more destructive than high taxation. For political reasons, the need to keep such high-end entitlements incentivises corruption. Also, with regard to adequate funding for social programmes, people wishing to engage in such specialised enterprises face high entry costs that the consumer and subsequently the state ultimately must pay for.

Those additional barriers,decrease the tax base as persons begin to spend more of their disposable income in an effort to obtain the training and skills necessary to compete in and for what the marketplace offers, in addition to the high cost of private investment into such specialised enterprises.

What makes it worse is if the perception of risk through sacrifice made by individuals does not facilitate for the full cycle completion on endeavours. Or, the high cost for entry is private market based (cost for capital investment and cost for private education), where the government does not have a progressive, optimal tax mix and that tax mix model is not synergised to assist with the equitable development of the industry at all levels.

When such market failures occur, the government must spend on socio-economic policies that develop infrastructure and human capital.

Through all of this, I must state that the issues are more complex than just taxation. We need more bang for the buck and a re-engineering of our socio-economic programmes, in addition to doing more with respect to meaningful tax and spend policies that encourage economic growth, as well as lowering the private and public entry barriers to enterprise and skills training.

Before we begin the discussions on what forms of taxation we should have -- VAT, excise taxes, etc... -- or what types of spending we must endeavour, we must begin to frame the minds of citizens and add to the conversation of what the economic importance of tax and spending reform is and what that means to us all, as I hoped this article addressed.

April 19, 2010

caribbeannetnews

Sunday, April 18, 2010

Government urged to tread carefully on bail change

Govt urged to tread carefully on bail change
By Candia Dames ~ Guardian News Editor ~ candia@nasguard.com:



In crafting its amendment to the Bail Act the government must be careful that it does not legislate anything that would violate the constitutional rights of any citizens, according to prominent attorney Damian Gomez.

Another noted attorney, Wayne Munroe, said in an interview with The Nassau Guardian yesterday that any law that is found to be unconstitutional would have no impact.

"The Supreme Court will strike down any law that would violate somebody's constitutional right," Munroe said.

Gomez and Munroe, who spoke to The Guardian separately, were reacting to the government's declaration in the Speech from the Throne that it will bring an amendment to Parliament which would further restrict the right to bail for persons charged with serious crimes, and to limit the circumstances under which bail may be granted.

Munroe noted that currently bail is granted in three instances: When a suspect has been on remand for an unreasonable period of time; when a judge determines the evidence against that suspect is not strong and when a determination is made that prison conditions are such that a medical condition might result in a person's death in prison.

Under the Bahamian constitution, if any person is charged with a criminal offense, unless the charge is withdrawn, the case shall be afforded a fair hearing within a reasonable time by an independent and impartial court established by law.

Gomez believes that it is often the fault of the Office of the Attorney General that many cases are delayed.

"The real question is why is it taking us so long to provide the attorney general's office with the resources to ensure that it carries out its lawful mandate," he said. "If it isn't a question of resources, what is happening in that office that causes delays which inflict incarceration of persons who have in fact not been convicted? We are hopeful that the government in its efforts to curtail the conditions under which bail is granted does not impede on the constitutional rights of accused persons and does not ignore the responsibility of the government to ensure our attorney general's office [has the necessary resources] and is efficient in the delivery of the services the public expects it to deliver.

"Until we resolve those problems associated with efficiency and with levels of resources we are going to be confronted with situations in which the public becomes alarmed, anxious and fearful that the law is not in fact being carried out and that persons are able to commit crimes and to do so with impunity. We are hopeful that the resources will be provided to the attorney general's office and I will be surprised if any legislative measure can be used as a substitute for the resources for that department. Until that department is properly resourced we will have the specter of long delays which result in bail being granted."

Gomez added, "We can only at this stage reiterate the warning that we are a constitutional democracy and the provisions of Article 20 of the constitution apply to criminal proceedings and civil proceedings, and the rights of accused persons are constitutionally protected rights."

Meanwhile, Munroe questioned whether the government's motives are pure as it regards its plan to introduce an amendment to the Bail Act.

"I think it's done for a cheap political gain and if that's how they tend to deal with the liberty of the subject then it's for the subject to determine whether that's reasonable," he said.

The government noted in the Speech from the Throne that a number of people who commit crimes do so while on bail pending trial for other offenses.


April 16 2010

thenassauguardian

Saturday, April 17, 2010

Attorney General John Delaney says bail changes necessary

AG says bail changes necessary
By Krystel Rolle ~ Guardian Staff Reporter ~ krystel@nasguard.com:



An amendment to the Bail Act that would further restrict the right to bail for people charged with serious crimes and limit the circumstances under which bail may be granted is "extremely important", according to Attorney General John Delaney.

He acknowledged that a growing number of people on bail are allegedly committing other crimes.

But Delaney yesterday declined to provide any bail figures. At last count in 2009, the number of murder suspects on bail was more than 100, according to Minister of National Security Tommy Turnquest.

Delaney said, "As far as the AG's office is concerned, we are a part of the criminal justice system. We're only one part, but we consider the prosecution part to be a very important part. And we want to ensure, having regard to the needs of the Bahamian people, and their concern about the fact that after persons are charged — albeit they're innocent until proven guilty and albeit there is a need for trials to be tried within a reasonable period of time — that with the fact that there appears to be a number of persons that are already charged that are being released on bail and they are alleged to having committed other offenses and therefore being charged again.

"So the important thing is the government must respond to that."

The government's statement that it intends to amend the Bail Act drew applause as it was read on Wednesday morning.

Delaney pointed out that while the government will bring the legislation, that is as far as it can go.

"As far as the granting of bail is concerned, that's not something within the prosecution's [power]," said Delaney. "That's something for the judiciary — the judges. They would fairly exercise their discretion and make decisions. Now the question is how should the legislature represent the people. Should they look at the circumstances under which bail is granted and narrow that to be responsive to the pressing concerns of the Bahamian people while of course ensuring that substantial fairness is done with respect to the rights of the individual?"

The government also intends to introduce legislation to enact a new modern Penal Code and a new updated Criminal Procedure Code, repeal and replace the existing Magistrates Court Act and introduce a new Coroners Act.

In addition, the government intends to amend the Legal Profession Act to facilitate more expeditious disciplining of errant attorneys.

Delaney said all of the changes are necessary.

"With respect to the Magistrates Act, believe it or not, most of our cases are resolved at that first tier of the justice system," he said. "Then the second busiest tier is the Supreme Court and then you have the Court of Appeal, which is far less, then the Privy Council which is less still. So when we concentrate on the magistrate's court we are concentrating on the level that impacts the great majority of cases that our system generates."

He admitted that as it stands now, the magistrate's court is "not the most efficient system".

"We're looking at it to make sure the system is more efficient. So that's our burden, to try and improve things," the attorney general said.

As it relates to the Penal Code, Delaney said some of the offenses are "trapped in the last century."

Overall, Delaney said while the government's legislative agenda is very aggressive, the attorney general's office is satisfied with the upcoming changes.

"Our office will be extremely busy but we're very excited about it," he said. "And we're looking forward to getting these bills to Parliament."

April 16 2010


thenassauguardian

Friday, April 16, 2010

Government outlines ambitious Plan in throne speech

By Candia Dames ~ Guardian News Editor ~ candia@nasguard.com:



The government yesterday outlined an ambitious legislative agenda in the Speech from the Throne, which highlighted more than 30 measures it intends to have passed.

A few of the proposed pieces of legislation were contained in the 2007 speech, but a notable item — the controversial marital rape bill — is not listed for resurrection. And despite what some expected, there was no mention of any legislation to provide for the legalization of gambling for Bahamians.

The government's statement that it intends to amend the Bail Act drew applause as it was read by Sir Arthur Foulkes, the country's newest governor general who was sworn in about an hour earlier at Government House.

The statement came amid ongoing public concern about violent crime in the society and calls for the government to act to address the scourge.

"Many provisions in the Penal Code and in the Criminal Procedure Code are relics from a bygone period," the speech says.

"My government will therefore place before you legislation to enact a new modern Penal Code and a new updated Criminal Procedure Code."

The speech continues, "A number of persons who commit crimes, do so whilst on bail pending trial for other offenses. An amendment to the Bail Act will be placed before you to further restrict the right to bail for persons charged with serious crimes, and to limit the circumstances under which bail may be granted."

It was also announced that legislation will be brought to repeal and replace the existing Magistrates Court Act. The government will introduce a new Coroners Act, and legislation to repeal and replace the 1943 Prison Act.

In addition, the government intends to amend the Legal Profession Act to facilitate more expeditious disciplining of errant attorneys.

Saying that it has a long-standing commitment to good, effective and open governance, the government foreshadowed a Freedom of Information Bill "meant to enhance transparency and accountability and to provide the Bahamian people and the media with greater access to government decision-making". Prime Minister Hubert Ingraham has previously said he has no specific timeline for introducing this measure, other than he intends to have it passed before the end of his five-year term in office.

The government also announced in its speech yesterday that it will continue public sector reform and will place before Parliament a new Public Service Act.

Another notable measure included in the Speech from the Throne is a proposed bill to amend the Parliamentary Elections Act. The need for amendments to this piece of legislation was highlighted after the recent Elizabeth Election Court ruling exposed failures in the parliamentary registration system — as did the two rulings handed down in the Pinewood and Marco City challenges brought after the 2007 general election.

In the seven-page speech, the government outlined proposed legislation to protect the environment.

"To further bolster our environmental defenses and combat the dire effects of climate change, legislation will be placed before you to make enforcement of various international obligations and domestic laws more vigorous and effective," the speech says.

The government promised legislation to impose levies on the disposal of carbon-polluting items such as motor vehicles, tires, appliances and other items. It also proposes to amend the Bahamas National Trust Act, and has promised a Forestry Act and an Animal Control and Protection Act.

As it did in the 2007 speech, the government has committed to introducing a bill to protect the rights of persons with disabilities.

Other measures are also being proposed. Some of them are proposed legislation for a new Securities Act, a Small and Medium Size Business Development Act, a Medical Act and a Contractors Act.

The House of Assembly has been adjourned to next week Wednesday. Among other matters, there will be a resolution to thank the governor general for reading the Speech from the Throne.


April 15, 2010

thenassauguardian

Thursday, April 15, 2010

James Smith: Ex- finance minister warns Government about allowing Bahamians to gamble in foreign-owned casinos

Ex-minister warns over gambling
By NEIL HARTNELL
Tribune Business Editor:



A former finance minister yesterday cautioned the Government about allowing Bahamians to gamble in foreign-owned casinos, warning that it could lead to increased foreign currency outflows and actually reduce net revenues collected as taxes by the Government.

While the Ingraham administration's plans to reform this nation's gaming regulations are currently not thought to include Bahamians being allowed to gamble in the casinos at Atlantis and Cable Beach, the ex-finance minister in the former PLP administration, James Smith, said the implications of any such decision needed to be considered carefully because they were likely to negatively impact the nation's foreign exchange reserves.

Mr Smith explained that under the current system, with only foreigners allowed to gamble in Bahamas-based casinos, the Government gained its revenues in foreign currency, while the foreign reserves benefited whenever the Central Bank purchased US dollar proceeds from gaming activity from the commercial banks during the course of its daily operations.

But if Bahamians were allowed to gamble in the foreign-owned casinos, their Bahamian dollars would need to be converted into foreign currency whenever their owners wanted to repatriate profits/revenues outside this nation.

Such conversion, Mr Smith said, would cause a drain on foreign currency reserves that might not be offset by gambling by the foreign patrons of Bahamian casinos, leading to a net outflow of foreign exchange. "The earnings from the casinos are always foreign exchange," Mr Smith told Tribune Business, "so we are not only assured of revenues to the Treasury, but revenues for the foreign reserves when the Central Bank buys from the banks."

If Bahamians were allowed to gamble in casinos, their gaming losses would need to be "offset against foreign currency earnings".

"Therefore, in assessing this, you have to marry it with these other concerns, and look at the foreign currency impact and whether it contributes to the growth of GDP, or the reverse," Mr Smith said.

"You have to buy foreign currency to go out, and who mitigates losses by the locals, which would otherwise be capital inflows. You could end up with a zero contribution, or a negative one."

Explaining that the Government could end up with less revenue than anticipated, as well as increased foreign currency outflows, if it made such a decision, Mr Smith described this as the "unexpected returns" and "unintended effects" if Bahamians were allowed to gamble in the foreign-owned casinos.

And with many US states altering their lotteries because they were not obtaining the returns anticipated, Mr Smith added: "Gambling does not create added value; it merely creates the transfer of wealth from one group to another."

With Bahamians seemingly having "a high propensity to gamble", Mr Smith also warned that legalising the sector and permitting casino gambling for locals could also result in a loss of import and customs duties.

"We might end up getting less revenue because consumption has gone down, and the gaming industry does not require imports, because its equipment is already here," he added."

April 14, 2010

tribune242